DEERFIELD, Ill., Jan. 7 /PRNewswire-FirstCall/ -- Baxter International
Inc. (NYSE: BAX) announced today that it has initiated pre-clinical
programs to develop recombinant Factor IX proteins to treat hemophilia B.
Baxter will develop both an unmodified recombinant Factor IX therapy for
treatment of acute bleeding episodes and a chemically modified, long-acting
version of recombinant Factor IX therapy for prophylaxis of bleeding in
hemophilia B patients. Hemophilia B is the second most common type of
hemophilia, occurring in one in 25,000 male births and with an estimated
133,000 people living with hemophilia B worldwide.

"Extending our recombinant portfolio beyond ADVATE, which is indicated
for the treatment of hemophilia A, to target hemophilia B is a natural
progression of our leadership in hemophilia and in providing innovative
therapies for rare blood disorders," said Hartmut J. Ehrlich, MD, vice
president of global research and development for Baxter's BioScience
business. "Our goal is to develop an unmodified version of recombinant
Factor IX intended for acute treatment of bleeding episodes in hemophilia B
patients as well as to innovate a longer-acting Factor IX therapy for
prevention of bleeding episodes. A longer-acting Factor IX may translate
into few required infusions, and can help people living with hemophilia B
lead a more normal, healthy life."

Pre-clinical work on a longer-acting version of recombinant Factor IX
includes an important new partnership with Nektar Therapeutics (Nasdaq:
NKTR) to use the company's leading PEGylation technology in combination
with Baxter's recombinant Factor IX in order to increase the length of time
that Factor levels are maintained in the body. Nektar and Baxter have an
existing program aimed toward the development of longer acting Factor VIII
therapies.

In accordance with generally accepted accounting principles, Baxter
expects to record a special pre-tax charge of approximately $5 million for
in- process research and development associated with the transaction in the
fourth quarter of 2007. In addition, Baxter may make future development and
sales milestone-related payments to Nektar.

Baxter Hemophilia Research and Development

Baxter is a global leader in hemophilia therapy, with innovations that
span 40 years. Through its own scientific expertise and strategic
partnerships, Baxter is applying novel technologies that will pioneer the
next generation of hemophilia therapies. Baxter's goal is to greatly
enhance treatment convenience through therapies that require fewer
injections and offer non-intravenous dosing alternatives.

About Hemophilia and Hemophilia B

People with hemophilia do not produce adequate amounts of Factor VIII
or Factor IX protein, which are necessary for blood to effectively clot. If
untreated, patients with severe hemophilia have a greatly reduced life
expectancy. According to the World Health Organization, more than 400,000
people in the world have hemophilia, corresponding to an incidence of 15 to
20 in every 100,000 males born worldwide. Hemophilia B is largely an
inherited disorder in which the Factor IX protein needed to form blood
clots is missing or reduced. In approximately 30 percent of cases, there is
no family history of the disorder and the condition is the result of a
spontaneous gene mutation. The first diagnosis of hemophilia B occurred in
1952.

About Baxter

Baxter International Inc., through its subsidiaries, assists healthcare
professionals and their patients with the treatment of complex medical
conditions, including cancer, hemophilia, immune disorders, kidney disease
and trauma. The company applies its expertise in medical devices,
pharmaceuticals and biotechnology to make a meaningful difference in
patients' lives.

This release includes forward-looking statements concerning the
company's plans to develop recombinant Factor IX proteins to treat
hemophilia B, including unmodified recombinant Factor IX proteins and using
Nektar's PEGylation technology to develop a chemically modified long-acting
version of recombinant Factor IX therapy. The statements are based on
assumptions about many important factors, including the following, which
could cause actual results to differ materially from those in the
forward-looking statements: the timing and success of the pre-clinical
programs described in this release and any additional pre-clinical programs
initiated by Baxter with respect to the therapies described in this
release; and other risks identified in the company's most recent filing on
Form 10-Q and other SEC filings, all of which are available on the
company's web site. The company does not undertake to update its
forward-looking statements.

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